NASDAQ Jumps Over 2%, while S&P Nears New Record

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▪ David Bartosiak and Tracey Ryniec Agree to Disagree on whether the rise of Robinhood Traders and characters like Dave Portnoy are a sign that we’ve reached a market top
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▪ New stocks added to the Zacks Ultimate portfolio
▪ And much more

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Tech rebounded on Wednesday and brought the whole market along for the ride, leaving the S&P on the doorstep of a new high.

It was just yesterday that the Dow and S&P saw their first negative closes of August after a couple 7-day winning streaks, which had some folks wondering if a more pronounced pullback was underway given how hot stocks have been.

Apparently not.

The NASDAQ soared 2.13% (or just under 230 points) today to put the index back above 11,000. It finished at 11,012.24.

The FAANGs were back in the driver’s seat with all of the names rising well over 1% on Wednesday, led by Apple (NASDAQ:AAPL, +3.32%) and Amazon (NASDAQ:AMZN, +2.65%).

If tech is jumping like this, then it probably means that the recovery names are sluggish… and they were. In other words, it was the opposite of yesterday.

However, it didn’t keep the other indices from jumping by more than 1%. The S&P rose 1.4% to 3380.35, while the Dow increased 1.05% (or practically 290 points) to 27,976.84.

All eyes were on the S&P. The index momentarily crossed into record territory today and finished just about 0.2% from its all-time closing high. That’s about 6 points.

Remember how we wondered whether President Trump’s weekend executive orders would speed up or slow down a coronavirus deal in Congress?

Well, apparently it’s the latter as Washington can’t seem to agree on the color of the sky, let alone a plan to keep this economy going during unprecedented challenges.

The two sides haven’t even met since Friday.

But it’s ok… for now. The market is still in a pretty good mood. It expects a vaccine in the near future and is coming off a solid earnings season with some encouraging economic data (all things considered).

Let’s hope this positive sentiment lasts until Capitol Hill gets its act together.

Today's Portfolio Highlights:

Surprise Trader: You can’t get a quicker turnaround than this one. On Wednesday, Dave added Revolve Group (NYSE:RVLV), which reports after the bell TODAY! It’s an e-commerce fashion company that beat expectations in the past three quarters and now has a positive Earnings ESP of 28.57% for the next one. The editor also likes the earnings growth of 126.82% for next year with sales growth of 22.48%. He added RVLV with an 11% allocation, while also getting out of Health Catalyst (NASDAQ:HCAT). Read the full write-up for more on today’s moves. (UPDATE: Make it four in a row as RVLV soared past the Zacks Consensus Estimate after the close. Dave will have more.)

Home Run Investor: Your health doesn’t have to take a backseat just because we’re all stuck at home. That’s why Tivity Health (NASDAQ:TVTY) had such strong numbers in its most recent quarterly report. This health management services company beat by 216% and saw new customer growth of 28%. Earnings estimates soared after the beat, which made TVTY a Zacks Rank #1 (Strong Buy). Since this portfolio is full, the editor had to sell a name to make room for the new pick. He decided to get out of Health Catalyst (HCAT) on a down day for the stock and collected a nearly 22% return in a little over three months. The complete commentary has more on today’s moves. This portfolio also had a top performer today as Domo (NASDAQ:DOMO) gained nearly 9.2%.

Insider Trader: Shares of Camping World (CWH) have plunged nearly 24% in just the past five sessions after this outdoor products and RV company disappointed investors with its recent quarterly report. However, the CEO, who just happens to be The Profit star Marcus Lemonis, bought shares TWICE this week. He also bought earlier this year during the coronavirus selloff… and that worked out pretty well. Tracey considers this a “classic confidence buy” and decided to follow this insider into the name. The editor added CWH on Wednesday with a 10% allocation. Read the full write-up for more.

Until Tomorrow,
Jim Giaquinto